FOLLOWING RECENT INDEX INCREASES, THE LEVELS OF EMPLOYEE SALARY BANDS THAT CAN BE ATTACHED OR ASSIGNED WILL INCREASE SIGNIFICANTLY WITH EFFECT FROM 1 APRIL 2023.
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The mechanisms of attachment and assignment of wages allow creditors to recover amounts owed by an employee by requesting their employer to pay over part of their wages. The Labour Code provides a framework for this practice and stipulates that an employee's remuneration is divided into five bands, which can only be seized or assigned within certain limits.
After several years without any amendment (the previous one took effect on 1 December 2016), the Grand-Ducal regulation of 1 March 2023 published on 7 March 2023 in Luxembourg Official Journal Mémorial A n°106 of 2023, significantly uprates the salary bands by adapting them to the application rate of the sliding scale of salaries (index 877.01 1).
The regulation sets out the following revised bands relating to the assignment and attachment of work-related remuneration, together with pensions and annuities:
The new amounts apply from 1 April 2023.
Footnotes
1. This is the old index that came into effect on 1 April 2022. The legislator has not taken account of the new index applicable from 1 February 2023.
2. Excluding real estate and maintenance debts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.